Pension schemes frozen due to increasing red tape

Increasing red tape and regulation has made it more
difficult for employers to provide and improve good occupational pension

This was one of the main findings in a survey of 500 firms
by the National Association of Pension Funds.

The majority of respondents – 94 per cent – said the
management and provision of occupational pension schemes demanded more company
resources compared with five years ago.

Nine out of ten respondents also felt that providing and
managing schemes would become harder and require even greater resources over
the next five years.

Despite the difficulties faced by schemes the survey showed
a continuing willingness by employers to improve and broaden the range of
existing benefits.

David Cranston, NAPF director general, said: “The survey
shows that employers continue to offer their staff improvements to their
occupational pension schemes despite the continuing onslaught of regulation.

“The NAPF will be seeking further meetings with Ministers to
se how these onerous burdens can be reduced.”

By Ben Willmott

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